Greg Hinz On Politics

Preckwinkle gives unions 30 days to reach pension deal

Though she's careful not to use the word, Cook County Board President Toni Preckwinkle delivered what sounded like an ultimatum, telling the county's worker unions today that they must come to a quick agreement on pension reforms, or she'll pursue her own proposal in Springfield.

Ms. Preckwinkle's message was delivered at a meeting in the offices of the Chicago Federation of Labor. Included were both county officials and heads of its unions, including AFSCME, SEIU, the Teamsters and the building trades.

In a phone call afterward, Ms. Preckwinkle said her message “was well-received.” The union leaders “understand the need for shared sacrifice,” she said.

But Ms. Preckwinkle confirmed that her bottom line in the session was that the sides have a month to agree on a plan or she'll submit her own bill for consideration in the Legislature, which has the final word on pensions for public workers.

“We put everything on the table and said we need to come up with something in 30 days,” said Ms. Preckwinkle, whose administration has been holding separate meetings with individual leaders for more than a year. “We're going to meet again in two weeks.”

She added, “I think the labor leaders understand that unless we make some changes, we're not going to have a sustainable retirement system.”

Ms. Preckwinkle said she wouldn't call that an ultimatum. But, she said, “The longer we wait, the more onerous the changes will have to be.”

Chicago Federation of Labor President Jorge Ramirez also played down the significance of any stick Ms. Preckwinkle may have waved in the session.

“I don't think that it was received as an ultimatum,” he said. “She said she would use the 30-day time frame, but she never said 'or else.' ”

As of the end of fiscal 2011, the latest date available, the $7.4 billion county pension fund had just 57.2 percent of the assets on hand to pay eventual costs, according to the Civic Federation. Most pension funds shoot for at least a 90 percent funded ratio.

Among items put on the table were increases in both worker and county payments, reduced cost-of-living increases and a later retirement age. Ms. Preckwinkle declined to quantify any of those, saying, “I don't want to negotiate in the media.”

Mr. Ramirez said union chiefs are reviewing various options and “I think we're making some progress.”

Ms. Preckwinkle has been viewed as a relative moderate on pension matters, with a good relationship with organized labor. But Gov. Pat Quinn and legislative leaders also used to be tight with labor, and lately have been at loggerheads on possible reforms.